David Rosenberg spoke in the opening remarks. His talk was called “Year of the Pig (Lipstick won’t Help”. He is the chief Economist and Strategist at Gluskin Sheff & Associates. His company’s site is here. He worked at Merrill Lynch prior to 2009 and joined Gluskin Sheff in 2009.
Rosenberg says that he is bullish on bonds. Bonds are more fun. He says Powell is now whimpering under Trump’s Tweets. Trump has taken on China and China has not backed down. It is now an economic war. This is the first time that the US has been challenged economically. There is uncertainty in the bull market. There are no winners in a trade war.
There is more uncertainty now than ever before. The macro impact is definitely on the Fed’s radar screen. People are saving more and spending less. Trump has made uncertainty great again. We have lost output worldwide of 1% because of Trump’s trade war.
There is a contraction in the industrial sector. Deflation pressure is intensifying. Corp growth is slowing. Leading economic indicators show a downtrend. This has been going on for 19 months now in the world and 13 months in the US.
For the first time ever the output gap never closed, that is supply output over demand. The expansion of the last 10 years is built on straw. That is debt. There is deflationary pression showing in interest rates. One year treasuries at 1.5% and 30 year treasuries at 2.5%. People are buying long term bonds at 3.5% because interest rates will go to 2.5%.
Recessions always follow a Fed tightening cycle of 300 basis points or more. Cycle peak following Fed hikes. Last 13 of Fed tightening cycles had 10 landing in a recession. So, there is an 80% change of recession following Fed hikes. Inverted yield carves equals a recession. Low unemployment rates happen first.
Recession probabilities are increasing (now 80%). We have a rising recession risk. Stock market will peak first. The era of positive investing is now over. He is bullish on gold.
On my other blog I wrote yesterday about Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more. Next, I will write about CCL Industries Inc (TSX-CCL.B, OTC-CCDBF) ... learn more on Friday, November 1, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, October 31, 2019
Tuesday, October 29, 2019
Money Show 2019 – Kevin Prins
Steve Hawkins spoke in the opening remarks. His talk was called “Building Simply Portfolios Using Low-Cost ETFs”. He is the Managing Director, Head of Distribution, ETFs, and Managed Accounts at BMO Global Asset Management. His company’s site is here.
You can buy Market Cap ETFs which contain the larges companies and the larges weights. There are Fixed Income (Bond) ETFs and Sector ETFs (e.g. Utilities EFTs and new Communication ETFs). When you are buying ETFs, you are buying a basket of stocks. The Utilities ETF has a basket of utilities stock. There are innovated ETS such as Smart Beta ETFs with lower risk and Factor focused ETFs with Quality stocks or Growth stocks. You can tilt your portfolio of Value with EFTs.
With EFTs you have liquidity and diversification. This comes with buying a basket of stocks. ETFs are efficient, cost effective and you have portfolio transparency. When buying ETFs look not only at cost, but at exposure. You should know what you are buying and know the index/method of the ETF.
You can go to their site above for ETF tools. You can compare ETFs and Mutual Funds. It shows all ETFs in Canada. There is also an Excel output feature.
On my other blog I wrote yesterday about Molson Coors Canada (TSX-TPX.B, NYSE-TAP) ... learn more. Next, I will write about Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more on Wednesday, October 30, 2019 around 5 pm
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
You can buy Market Cap ETFs which contain the larges companies and the larges weights. There are Fixed Income (Bond) ETFs and Sector ETFs (e.g. Utilities EFTs and new Communication ETFs). When you are buying ETFs, you are buying a basket of stocks. The Utilities ETF has a basket of utilities stock. There are innovated ETS such as Smart Beta ETFs with lower risk and Factor focused ETFs with Quality stocks or Growth stocks. You can tilt your portfolio of Value with EFTs.
With EFTs you have liquidity and diversification. This comes with buying a basket of stocks. ETFs are efficient, cost effective and you have portfolio transparency. When buying ETFs look not only at cost, but at exposure. You should know what you are buying and know the index/method of the ETF.
You can go to their site above for ETF tools. You can compare ETFs and Mutual Funds. It shows all ETFs in Canada. There is also an Excel output feature.
On my other blog I wrote yesterday about Molson Coors Canada (TSX-TPX.B, NYSE-TAP) ... learn more. Next, I will write about Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more on Wednesday, October 30, 2019 around 5 pm
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, October 17, 2019
Money Show 2019 – Steve Hawkins
Steve Hawkins in the opening remarks. His talk was called “2019 Canadian ETF Industry Update”. He is the President and CEO of Horizons ETFs. His company’s site is here.
ETFs outsold Mutual Funds last year for the first time in 10 years. Horizons is the fourth largest seller of ETFs in Canada. It was the third issuer of ETFs. They have 3 line-ups, the first are Actively Managed Value and Growth Funds. These did not sell well at first but are now. New is the Bench Mark ETFs. They track stock indexes, currencies, and commodities. They are also tax efficient. They also have Beta Pro ETFs for short term investments for active traders.
The global growth in ETFs are high. ETFs are outselling Mutual Fuds as Mutual Funds are losing money. The number of ETF’s are growing rapidly. There is a lot of turmoil in the market place. Fees are going down. For active ETFs the Fees are around .55% and for passive they are under 0.20%.
On my other blog I wrote yesterday about Equitable Group Inc (TSX-EQB, OTC-EQGPF) ... learn more. Next, I will write North West Company (TSX-NWC, OTC-NWTUF) ... learn more on Friday, October 18, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
ETFs outsold Mutual Funds last year for the first time in 10 years. Horizons is the fourth largest seller of ETFs in Canada. It was the third issuer of ETFs. They have 3 line-ups, the first are Actively Managed Value and Growth Funds. These did not sell well at first but are now. New is the Bench Mark ETFs. They track stock indexes, currencies, and commodities. They are also tax efficient. They also have Beta Pro ETFs for short term investments for active traders.
The global growth in ETFs are high. ETFs are outselling Mutual Fuds as Mutual Funds are losing money. The number of ETF’s are growing rapidly. There is a lot of turmoil in the market place. Fees are going down. For active ETFs the Fees are around .55% and for passive they are under 0.20%.
On my other blog I wrote yesterday about Equitable Group Inc (TSX-EQB, OTC-EQGPF) ... learn more. Next, I will write North West Company (TSX-NWC, OTC-NWTUF) ... learn more on Friday, October 18, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, October 15, 2019
Money Show 2019 – Lorne Steinberg
Lorne Steinberg spoke in the opening remarks. His talk was called “The State of the Union: The Challenges That Investors Face in Today’s Market”. He is the CEO of Steinberg Wealth Management. His company’s site is here.
Lorne Steinberg says he has spent 30 years in the investment business and it is never boring. You need to reflect on the big picture. Their firm calls this the “State of the Union”. Political dysfunction has increased.
We have high debt. This is for government, corporations, and Individuals. This can be a big risk when interest rates go up.
We have slowing growth. However, we have also had the longest growth on record without a recession. He does not know when we will have a recession. China’s growth is lower than 6%. They need 6% growth for stability.
Another risk is interest rates. We had 5% mortgage rates 30 years ago, then they went higher. Now we have the lowest and even negative rates. One Bank has offered negative interest rate mortgages. We do not know the implications of negative interest rates. If inflation comes back, we could be in trouble.
Shiller says it is better to look at 10 year P/E. We look at 20 years. Volatility equal opportunity. Volatility is your friend. It results in opportunities for courageous investors. In the past the yields on stocks were lower than bond yields. With lower stock yields, we hoped for dividend increases. Now stock yields are higher than bond yields.
The Lesson is to focus on value. Buy low or hold cash and wait. Being fully invested in the market has not been a sound investment approach. Today’s market is a tough market. Rule No. 1 is do not lose money. Rule No. 2 is do not forget Rule # 1.
The entry price is critical. It is good to buy stock at the right price. Like real estate, you make your money when you buy. The entry price is critical. The hunt for values in today’s market is in Global value equities and High Yield Bonds. If nothing is cheap, hold some cash (Warren Buffet). For preferred shares, shareholders have been losers lately because they have not held value.
On my other blog I wrote yesterday about Medtronic PLC (NYSE-MDT) ... learn more. Next, I will write Equitable Group Inc (TSX-EQB, OTC-EQGPF) ... learn more on Wednesday, October 16, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Lorne Steinberg says he has spent 30 years in the investment business and it is never boring. You need to reflect on the big picture. Their firm calls this the “State of the Union”. Political dysfunction has increased.
We have high debt. This is for government, corporations, and Individuals. This can be a big risk when interest rates go up.
We have slowing growth. However, we have also had the longest growth on record without a recession. He does not know when we will have a recession. China’s growth is lower than 6%. They need 6% growth for stability.
Another risk is interest rates. We had 5% mortgage rates 30 years ago, then they went higher. Now we have the lowest and even negative rates. One Bank has offered negative interest rate mortgages. We do not know the implications of negative interest rates. If inflation comes back, we could be in trouble.
Shiller says it is better to look at 10 year P/E. We look at 20 years. Volatility equal opportunity. Volatility is your friend. It results in opportunities for courageous investors. In the past the yields on stocks were lower than bond yields. With lower stock yields, we hoped for dividend increases. Now stock yields are higher than bond yields.
The Lesson is to focus on value. Buy low or hold cash and wait. Being fully invested in the market has not been a sound investment approach. Today’s market is a tough market. Rule No. 1 is do not lose money. Rule No. 2 is do not forget Rule # 1.
The entry price is critical. It is good to buy stock at the right price. Like real estate, you make your money when you buy. The entry price is critical. The hunt for values in today’s market is in Global value equities and High Yield Bonds. If nothing is cheap, hold some cash (Warren Buffet). For preferred shares, shareholders have been losers lately because they have not held value.
On my other blog I wrote yesterday about Medtronic PLC (NYSE-MDT) ... learn more. Next, I will write Equitable Group Inc (TSX-EQB, OTC-EQGPF) ... learn more on Wednesday, October 16, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, October 10, 2019
Money Show 2019 – Michael Cooke
Michael Cooke spoke in the opening remarks part of the Money Show. His talk was called “Past, Present and Future of the Global ETF Industry”. He is the senior vice president and head of Exchange Traded Funds for Mackenzie Investments. His company’s site is here.
Canada had the first ETF in 1990. Next was the SPX in 1993 and it is the largest. Growth in last decade represents all geographies. There are 7,000 ETFs worldwide. Both Institutions (like the Bank of Japan, Teaches Pension) and Individuals use ETS. 70% of stocks in ETFs are US. ETFs are relatively new to Japan. ETFs have local people running them. Canada is ahead of the curve in ETFs. There is great penetration in Canada.
ETFs used broadly by institutions and individuals. ETFs can serve as an active tool in investment portfolios. You can get proper asset class management with ETFs. When looking at ETFs costs, look at the net returns, not the fee. No or low fee ETFs may not give good returns.
What matters to investors when they select an ETF is liquidity and trading volume. Access and exposure are also important with ETFs. The ETF market is an efficient market. Costs are important but only when it produces good net returns. Look at the total cost of your investment. ETFs are the most innovative market today.
On my other blog I wrote yesterday about Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more. Next, I will write about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Friday, October 11, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Canada had the first ETF in 1990. Next was the SPX in 1993 and it is the largest. Growth in last decade represents all geographies. There are 7,000 ETFs worldwide. Both Institutions (like the Bank of Japan, Teaches Pension) and Individuals use ETS. 70% of stocks in ETFs are US. ETFs are relatively new to Japan. ETFs have local people running them. Canada is ahead of the curve in ETFs. There is great penetration in Canada.
ETFs used broadly by institutions and individuals. ETFs can serve as an active tool in investment portfolios. You can get proper asset class management with ETFs. When looking at ETFs costs, look at the net returns, not the fee. No or low fee ETFs may not give good returns.
What matters to investors when they select an ETF is liquidity and trading volume. Access and exposure are also important with ETFs. The ETF market is an efficient market. Costs are important but only when it produces good net returns. Look at the total cost of your investment. ETFs are the most innovative market today.
On my other blog I wrote yesterday about Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more. Next, I will write about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Friday, October 11, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, October 8, 2019
Money Show 2019 – Peter Hodson
Peter Hodson spoke in the opening remarks. His talk was called “Is Your Portfolio Set Up Properly”. He is the owner and editor of Canadian Money Saver magazine and CEO of i5 Research. His company’s site is here.
His magazine and i5 Research give conflict free advice. Some common mistakes are:
Portfolio Analytics
What he likes is small companies with large insider investment. His index keeps out resource stocks. They are doing well at present but this is because of Saudi Arabia. Generally, indexes have over price stocks included. Indexes do not care if a company is making money or not.
If you buy Mutual Funds, watch out for over diversification. An RB Mutual Fund has 31.5% financial and 21.5% energy. Most MFs have inadequate International diversification. Most Canadian MFs have the same stocks. The Canadian market is only 4% of the international market. Currency itself is a diversification. Most large companies have offices all over the world.
Are you still working? You could have excess income over expenses. Why do you need a cash cushion? Why do you need high fixed income exposure? Investors love this sector too much. You need dividend stock. You can overestimate risk. Most recessions are short and shallow. The industry wants you to be worried. When you buy a stock someone else did not want it.
It is almost impossible to lose money in the market over 10 years. You cannot lose money over 15 or 20 years. If you are in the market for 100 years you only need stocks. Do not do too much trend following. Cannabis stocks are last year’s news. Gold is this year’s news. If you have a pension it is probably a huge asset and is equal to fixed income.
On my other blog I wrote yesterday about Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more. Next, I will write about Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more on Wednesday, October 09, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
His magazine and i5 Research give conflict free advice. Some common mistakes are:
Portfolio Analytics
- Keeping losing stocks too long.
- Too many stock positions.
- Inability to accept losses
- Looking where a stock has been
- Way too much cash (everyone is worried)
- Need to have 2 to 3% position in each stock
- Less than 1% in a stock is meaningless
- Not considering your time frame
- Not considering huge value of your pension
- Inaccurate expectation of risk.
What he likes is small companies with large insider investment. His index keeps out resource stocks. They are doing well at present but this is because of Saudi Arabia. Generally, indexes have over price stocks included. Indexes do not care if a company is making money or not.
If you buy Mutual Funds, watch out for over diversification. An RB Mutual Fund has 31.5% financial and 21.5% energy. Most MFs have inadequate International diversification. Most Canadian MFs have the same stocks. The Canadian market is only 4% of the international market. Currency itself is a diversification. Most large companies have offices all over the world.
Are you still working? You could have excess income over expenses. Why do you need a cash cushion? Why do you need high fixed income exposure? Investors love this sector too much. You need dividend stock. You can overestimate risk. Most recessions are short and shallow. The industry wants you to be worried. When you buy a stock someone else did not want it.
It is almost impossible to lose money in the market over 10 years. You cannot lose money over 15 or 20 years. If you are in the market for 100 years you only need stocks. Do not do too much trend following. Cannabis stocks are last year’s news. Gold is this year’s news. If you have a pension it is probably a huge asset and is equal to fixed income.
On my other blog I wrote yesterday about Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more. Next, I will write about Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more on Wednesday, October 09, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, October 3, 2019
Something to Buy October 2019
There is always something to buy in the stock market. On Tuesday, I put out a list of the stocks that I covered and showed what stock might be a good deal based on dividend yield. Now I am trying to categorize what sorts of stocks may be a good deal based on dividend yield.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield.
For other testing, like using P/E Ratios and Price/Graham Price Ratios, you use EPS estimates or from the last reported financial quarter. When using P/S Ratios, P/CF Ratios or P/BV Ratios you are using data from the last reported financial quarter.
This system does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy October 2019 Spreadsheet to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 23 stocks in the Consumer Discretionary category. Three of these stocks (13%) are showing as cheap by the historically high dividend yield and they are Leon's Furniture (TSX-LNF, OTC-LEFUF), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
Ten (or 43%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NYSE-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Dorel Industries (TSX-DII.B, OTC-DIIBF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), Savaria Corporation (TSX-SIS, OTC-SISXF), and Stingray Digital Group Inc (TSX-RAY.A). Goeasy Ltd (TSX-GSY, OTC-EHMEF) has been removed from this list.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (or 30%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Loblaw Companies (TSX-L, OTC-LBLCF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF) has been added to this list.
I follow Five Health Care stocks. One stock (or 20%) of these stocks is showing as cheap by the historically high dividend yield. That stock is HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). There is no change from last month.
Three or 60% are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). There is no change from last month.
I follow 10 Energy stocks. Three stock or 30% are showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ensign Energy Services (TSX-ESI, OTC-ESVIF), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
There are six stocks (or 60%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Husky Energy (TSX-HSE, OTC-HUSKF), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). ARC Resources Ltd (TSX-ARX, OTC-AETUF) has been removed to the list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (or 63%) are showing cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Bank of Montreal (TSX-BMO, NYSE-BMO), and Royal Bank (TSX-RY, NYSE-RY) have been removed from the list.
I follow 14 Financial Service stocks. No stock is showing as cheap by the historically high dividend yield. Power Corp (TSX-POW, OTC-PWCDF) has been removed from the list.
Nine (or 57%) stocks are showing cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Royalty Corp (TSX-AD, OTC-ALARF), Chesswood Group (TSX-CHW, OTC-CHWWF), CI Financial (TSX-CIX, OTC-CIFAF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), Onex Corp (TSX-ONEX, OTC-ONEXF) and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 6 Insurance stocks. No stock is showing as cheap by the historically high dividend yield. Power Financial Corp (TSX-PWF, OTC-POFNF) has been removed from the list.
Four stocks (or 67%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), Manulife Financial Corp (TSX-MFC, NYSE-MFC), and Power Financial Corp (TSX-PWF, OTC-POFNF). Sun Life Financial (TSX-SLF, NYSE-SLF) has been removed from the list.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 6 Construction stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks or 33% are showing as cheap by historical median dividend yield. They are Bird Construction Inc (TSX-BDT, OTC-BIRDF), and Stantec Inc. (TSX-STN, NYSE-STN). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. None are cheap by the historically high dividend yield. There is no change from last month.
Two stocks or 67% are showing as cheap by historical median dividend yield. They are Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). There is no change from last month.
I have 7 Manufacturing stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Four stocks or 57% are showing as cheap by historical median dividend yield. They are Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF), Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF), and PFB Corp (TSX-PFB, OTC-PFBOF). There is no change from last month.
I follow 16 Services stocks. One stock is showing as cheap by the historically high dividend yield. That stock is Pason Systems Inc. (TSX-PSI, OTC-PSYTF). Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) have been removed from this list.
Five stocks or 31% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF), Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA), Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). TECSYS Inc (TSX-TCS, OTC-TCYSF) has been removed from this list.
I follow 9 Material stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Five stock or 56% are showing as cheap by historical median dividend yield. The stocks are Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF), Methanex Corp (TSX-MX, NASDAQ-MEOH), Stella-Jones (TSX-SJ, OTC-STLJF), and Supremex Inc (TSX-SXP, OTC-SUMXF). There is no change from last month.
I follow 10 Real Estate stocks. No stock is showing as cheap by historically high dividend yield. There is no change from last month. One stock (or 10%) are showing as cheap by historical median dividend yield. It is Melcor Developments Inc. (TSX-MRD, OTC-MODVF). Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U) has been removed from this list.
I follow 4 of the Telecom Service stocks. No stocks are showing as cheap by historically high dividend yield. This has not changed from last month.
Four stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). This has not changed from last month.
I follow 8 Info Tech stocks. None are showing as cheap by historical high dividend yield. There is no change from last month.
Four stocks (or 50%) are showing cheap by historical median dividend yield. They are Absolute Software Corporation (TSX-ABT, OTC-ALSWF), Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Evertz Technologies (TSX-ET, OTC-EVTZF) has been added to this list.
I follow 7 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. This has not changed from last month.
Three stocks (or 43%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF) and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 11 of the Power type utility companies. One stock is showing as cheap by the historically high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). Just Energy Group Inc (TSX-JE, NYSE-JE) has been removed from this list.
Three stocks (or 27%) are showing cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), and Just Energy Group Inc. (TSX-JE, NYSE-JE). There is no change from last month.
On my other blog I wrote yesterday about Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. Next, I will write about Teck Resources Ltd (TSX-TECK.B, NYSE-TECK)... learn more on Friday, October 04, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield.
For other testing, like using P/E Ratios and Price/Graham Price Ratios, you use EPS estimates or from the last reported financial quarter. When using P/S Ratios, P/CF Ratios or P/BV Ratios you are using data from the last reported financial quarter.
This system does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy October 2019 Spreadsheet to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 23 stocks in the Consumer Discretionary category. Three of these stocks (13%) are showing as cheap by the historically high dividend yield and they are Leon's Furniture (TSX-LNF, OTC-LEFUF), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
Ten (or 43%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NYSE-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Dorel Industries (TSX-DII.B, OTC-DIIBF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), Savaria Corporation (TSX-SIS, OTC-SISXF), and Stingray Digital Group Inc (TSX-RAY.A). Goeasy Ltd (TSX-GSY, OTC-EHMEF) has been removed from this list.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (or 30%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Loblaw Companies (TSX-L, OTC-LBLCF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF) has been added to this list.
I follow Five Health Care stocks. One stock (or 20%) of these stocks is showing as cheap by the historically high dividend yield. That stock is HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). There is no change from last month.
Three or 60% are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). There is no change from last month.
I follow 10 Energy stocks. Three stock or 30% are showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ensign Energy Services (TSX-ESI, OTC-ESVIF), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
There are six stocks (or 60%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Husky Energy (TSX-HSE, OTC-HUSKF), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). ARC Resources Ltd (TSX-ARX, OTC-AETUF) has been removed to the list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (or 63%) are showing cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Bank of Montreal (TSX-BMO, NYSE-BMO), and Royal Bank (TSX-RY, NYSE-RY) have been removed from the list.
I follow 14 Financial Service stocks. No stock is showing as cheap by the historically high dividend yield. Power Corp (TSX-POW, OTC-PWCDF) has been removed from the list.
Nine (or 57%) stocks are showing cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Royalty Corp (TSX-AD, OTC-ALARF), Chesswood Group (TSX-CHW, OTC-CHWWF), CI Financial (TSX-CIX, OTC-CIFAF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), Onex Corp (TSX-ONEX, OTC-ONEXF) and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 6 Insurance stocks. No stock is showing as cheap by the historically high dividend yield. Power Financial Corp (TSX-PWF, OTC-POFNF) has been removed from the list.
Four stocks (or 67%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), Manulife Financial Corp (TSX-MFC, NYSE-MFC), and Power Financial Corp (TSX-PWF, OTC-POFNF). Sun Life Financial (TSX-SLF, NYSE-SLF) has been removed from the list.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 6 Construction stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks or 33% are showing as cheap by historical median dividend yield. They are Bird Construction Inc (TSX-BDT, OTC-BIRDF), and Stantec Inc. (TSX-STN, NYSE-STN). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. None are cheap by the historically high dividend yield. There is no change from last month.
Two stocks or 67% are showing as cheap by historical median dividend yield. They are Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). There is no change from last month.
I have 7 Manufacturing stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Four stocks or 57% are showing as cheap by historical median dividend yield. They are Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF), Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF), and PFB Corp (TSX-PFB, OTC-PFBOF). There is no change from last month.
I follow 16 Services stocks. One stock is showing as cheap by the historically high dividend yield. That stock is Pason Systems Inc. (TSX-PSI, OTC-PSYTF). Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) have been removed from this list.
Five stocks or 31% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF), Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA), Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). TECSYS Inc (TSX-TCS, OTC-TCYSF) has been removed from this list.
I follow 9 Material stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Five stock or 56% are showing as cheap by historical median dividend yield. The stocks are Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF), Methanex Corp (TSX-MX, NASDAQ-MEOH), Stella-Jones (TSX-SJ, OTC-STLJF), and Supremex Inc (TSX-SXP, OTC-SUMXF). There is no change from last month.
I follow 10 Real Estate stocks. No stock is showing as cheap by historically high dividend yield. There is no change from last month. One stock (or 10%) are showing as cheap by historical median dividend yield. It is Melcor Developments Inc. (TSX-MRD, OTC-MODVF). Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U) has been removed from this list.
I follow 4 of the Telecom Service stocks. No stocks are showing as cheap by historically high dividend yield. This has not changed from last month.
Four stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). This has not changed from last month.
I follow 8 Info Tech stocks. None are showing as cheap by historical high dividend yield. There is no change from last month.
Four stocks (or 50%) are showing cheap by historical median dividend yield. They are Absolute Software Corporation (TSX-ABT, OTC-ALSWF), Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Evertz Technologies (TSX-ET, OTC-EVTZF) has been added to this list.
I follow 7 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. This has not changed from last month.
Three stocks (or 43%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF) and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 11 of the Power type utility companies. One stock is showing as cheap by the historically high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). Just Energy Group Inc (TSX-JE, NYSE-JE) has been removed from this list.
Three stocks (or 27%) are showing cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), and Just Energy Group Inc. (TSX-JE, NYSE-JE). There is no change from last month.
On my other blog I wrote yesterday about Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. Next, I will write about Teck Resources Ltd (TSX-TECK.B, NYSE-TECK)... learn more on Friday, October 04, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, October 1, 2019
Dividend Stocks October 2019
First, I want to point out that not all of the stocks I follow are great investments. I follow a diverse selection of stocks. There are some that I would never invest in personally. I follow a number of resource stocks even though I personally have little invested in this area. I follow what I find interesting and with resource stocks, I think it is important for Canadians to know what is happening in the resource area. On the other hand, I do follow of good number of great dividend growth stocks.
The theory is that you should use the dividend yield to see if a dividend stock is selling at a stock price that is relatively cheap. A stock price is considered cheap if it is selling at a dividend yield higher than the historical high yield or higher than the historical average yield or historical median yield. See my spreadsheet at dividend growth stocks that I just updated for October 2019. On this list,
Pason Systems Inc. (TSX-PSI, OTC-PSYTF)
Savaria Corporation (TSX-SIS, OTC-SISXF)
Of the stocks I follow, no stock has cut or suspended or terminated their dividends. There is a tension between needing money for investing in growth and paying dividends.
Industrial Alliance Ins. & Fin. Srv. Inc has a name change to IA Financial Corp and IAIFS is now a subsidiary. Apparently, this change took place in January 2019, but where I look up stock information were slow to change to the new name.
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 9.03% of the stocks that I follow. Four of these stocks never had dividends, so 5.81% of the stocks I follow have suspended their dividends. The three stocks that never paid dividends are Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP), Blackberry Ltd. (TSX-BB, NASDAQ-BBRY) and Trigon Metals Inc. (TSX-TM, OTC-PNTZF).
I am showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). See these fields on the right side of the file. You can highlight a particular stock using your cursor to highlight the appropriate line.
There are always some stocks to buy because they are priced reasonably. There are always stocks to currently avoid because they are overpriced. Looking at dividend growth stocks that are selling at stock prices that give them a dividend yield above the historical median dividend yield are probably the best bet.
The stocks that are selling at prices that give them a dividend yield above the historical high yield could be good stocks to buy. However, these stocks may be selling so cheap because of current troubles, especially financial troubles and should be treated with caution. Do not forget that I have all the stocks I follow on this spreadsheet and some are much better investments than others.
You should always investigate a stock before you buy. Sometimes different stocks in certain sectors are just out of favour or the stock market is just in one of its declines. However, a stock may be relatively cheap because it has problems. That is why you should always investigate a stock before buying.
Looking at stock this way is equivalent to a stock filter. A main problem I know of is for the old income trusts. These companies have generally lowered their dividend yields forever and they will probably never get back to the old dividend yield highs they made as an income trust company. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield. I also started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this.
Also, on some stocks I have a lot more information years in my spreadsheets than for other stocks. So, finding a stock on the list as "cheap" is only the first step in finding a stock to buy. This is the same with any other sort of stock filters that you can use.
The last thing to remember is that I have entering figures into a spreadsheet. I could put them in incorrectly, I can transpose figures and I can misread figures. This is another great reason why you should check a stock out before investing. As this is just a filter, it works better on some stocks than on others.
See my entry on my methodology in establishing the historical dividend yield highs and lows for the stocks that I cover. I have an entry on my introduction to Dividend Growth. You might want to look at my original entry on Dividend Growth Stocks. I have also written about why I like Dividend Growth companies.
On my other blog I wrote yesterday about K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more. Next, I will write about Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more on Tuesday, October 2, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram with #walktoronto.
The theory is that you should use the dividend yield to see if a dividend stock is selling at a stock price that is relatively cheap. A stock price is considered cheap if it is selling at a dividend yield higher than the historical high yield or higher than the historical average yield or historical median yield. See my spreadsheet at dividend growth stocks that I just updated for October 2019. On this list,
- I have 09 stocks with a dividend yield higher than the historical high dividend yield,
- I have 49 stocks with a dividend yield higher than the historical average dividend yield
- I have 73 stocks with a dividend yield higher than the historical median dividend yield and
- 87 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 14 stocks with a dividend yield higher than the historical high dividend yield,
- I have 52 stocks with a dividend yield higher than the historical average dividend yield
- I have 79 stocks with a dividend yield higher than the historical median dividend yield and
- 89 stocks with a dividend yield higher than the 5 year average dividend yield.
- I had 9 stocks with a dividend yield higher than the historical high dividend yield,
- I had 45 stocks with a dividend yield higher than the historical average dividend yield and
- 39 stocks with a dividend yield higher than the 5 year average dividend yield.
Pason Systems Inc. (TSX-PSI, OTC-PSYTF)
Savaria Corporation (TSX-SIS, OTC-SISXF)
Of the stocks I follow, no stock has cut or suspended or terminated their dividends. There is a tension between needing money for investing in growth and paying dividends.
Industrial Alliance Ins. & Fin. Srv. Inc has a name change to IA Financial Corp and IAIFS is now a subsidiary. Apparently, this change took place in January 2019, but where I look up stock information were slow to change to the new name.
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 9.03% of the stocks that I follow. Four of these stocks never had dividends, so 5.81% of the stocks I follow have suspended their dividends. The three stocks that never paid dividends are Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP), Blackberry Ltd. (TSX-BB, NASDAQ-BBRY) and Trigon Metals Inc. (TSX-TM, OTC-PNTZF).
I am showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). See these fields on the right side of the file. You can highlight a particular stock using your cursor to highlight the appropriate line.
There are always some stocks to buy because they are priced reasonably. There are always stocks to currently avoid because they are overpriced. Looking at dividend growth stocks that are selling at stock prices that give them a dividend yield above the historical median dividend yield are probably the best bet.
The stocks that are selling at prices that give them a dividend yield above the historical high yield could be good stocks to buy. However, these stocks may be selling so cheap because of current troubles, especially financial troubles and should be treated with caution. Do not forget that I have all the stocks I follow on this spreadsheet and some are much better investments than others.
You should always investigate a stock before you buy. Sometimes different stocks in certain sectors are just out of favour or the stock market is just in one of its declines. However, a stock may be relatively cheap because it has problems. That is why you should always investigate a stock before buying.
Looking at stock this way is equivalent to a stock filter. A main problem I know of is for the old income trusts. These companies have generally lowered their dividend yields forever and they will probably never get back to the old dividend yield highs they made as an income trust company. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield. I also started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this.
Also, on some stocks I have a lot more information years in my spreadsheets than for other stocks. So, finding a stock on the list as "cheap" is only the first step in finding a stock to buy. This is the same with any other sort of stock filters that you can use.
The last thing to remember is that I have entering figures into a spreadsheet. I could put them in incorrectly, I can transpose figures and I can misread figures. This is another great reason why you should check a stock out before investing. As this is just a filter, it works better on some stocks than on others.
See my entry on my methodology in establishing the historical dividend yield highs and lows for the stocks that I cover. I have an entry on my introduction to Dividend Growth. You might want to look at my original entry on Dividend Growth Stocks. I have also written about why I like Dividend Growth companies.
On my other blog I wrote yesterday about K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more. Next, I will write about Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more on Tuesday, October 2, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram with #walktoronto.
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